London Daily

Focus on the big picture.

UK banking 'resilient' and inflation fight remains top focus, says Bank of England Governor Andrew Bailey

UK banking 'resilient' and inflation fight remains top focus, says Bank of England Governor Andrew Bailey

The Governor of the Bank of England, Andrew Bailey, has said the UK banking system is in a sound position and well placed to support the economy despite some global jitters.
The UK banking system is "resilient" and the main focus for the Bank of England remains tackling high inflation, its governor has said.

Andrew Bailey's comments came as he told an audience at the London School of Economics this evening that he was not unduly worried by recent global jitters, which come following the high-profile tumultuous takeovers of Silicon Valley Bank and Credit Suisse.

The concerns contributed to a volatile day of trading Europe-wide on Friday which saw Deutsche Bank's shares fall more than 14% at one point, although it and many other banks saw limited recoveries on Monday as markets calmed.

Mr Bailey said that despite "big strains in parts of the global banking system" he remained confident UK banks were "resilient, with robust capital and liquidity positions, and well placed to support the economy."

He told his audience: "Recently, the evidence has pointed to more resilient activity in the economy, and likewise employment; signs that nominal wage growth has been rather weaker than expected; and two months in which there was first some downside news on inflation relative to our expectation and then a bit more upside news.

"This reminds us that the path of inflation will not be entirely smooth and cost and price pressures remain elevated."

Mr Bailey added: "We have a strong macroprudential policy regime in this country. With the Financial Policy Committee on the case of securing financial stability, the Monetary Policy Committee can focus on its own important job of returning inflation to target."

It comes after inflation made a surprise leap to 10.4% last week, with the Bank of England then raising the interest rate for an eleventh successive time to 4.25%.

Following the announcement, Mr Bailey said he was feeling "a bit more optimistic" and expected inflation to fall sharply in the summer.

Despite the recent high-profile banking failures, the European Central Bank, US Federal Reserve and Swiss National Bank have also all raised interest rates this month.

Related Articles

London Daily
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Turkish Student Arrested for Using AI to Cheat in University Exam
Rise in Dengue and Other Mosquito-Borne Diseases in Europe Due to Climate Change
EU Elections Overview: Far-Right Gains and Major Political Shifts
Far-Right National Rally Dominates France's EU Vote
Macron Calls Snap Legislative Elections After Far-Right Victory
Far-Right Gains Significantly in EU Election
UK Job Market Shows Signs of Recovery
Orban’s Fidesz Party Wins Majority in Hungary’s EU Elections as New Challenger Emerges
Meloni's Far-Right Party Wins European Elections in Italy
Key Insights from the European Union Elections
European Union Elections and Rise of Far-Right Parties
England Loses Over 260,000 Social Rent Homes in a Decade
Campaigners Urge Government to Block Shein's FTSE Listing
First NHS AI-Run Physiotherapy Clinic Launches This Year
British TV Presenter Michael Mosley Found Dead on Greek Island
Ukrainian Forces Claims First Strike on Russia's Su-57 Fighter Jet
Macron Dissolves Parliament and Calls Snap Elections
Russia Adds Yulia Tymoshenko to Wanted List
UK Foreign Secretary David Cameron Tricked by Hoax Caller Posing as Former Ukrainian President
Kate Middleton's Absence from Colonel's Review Due to Chemotherapy
UK Foreign Secretary Deceived by Prank Video Call
Sunak Criticised Over D-Day Exit in BBC Debate
Rishi Sunak Apologizes for Leaving D-Day Commemoration Early
UK Woman Sentenced After Causing Fatal Crash While Sending Selfies
Danish Prime Minister Mette Frederiksen Assaulted in Central Copenhagen
UN to Add Israel to Human Rights Blacklist
Germany and France Oppose EU Luxury Car Restrictions to Russia
Plus-Sized Miss Alabama Sara Milliken Responds to Online Critics
Nigel Farage's Return Boosts Support for Reform UK Party
Labour Party to Pledge Recognition of Palestinian State in Election Manifesto
British Paratroopers Greeted by French Customs After D-Day Anniversary Airdrop
UK Statistics Watchdog Chief Urges Sunak to Clarify Labour Tax Claim Source
UK Conservatives Promise to Restore Child Benefit for Higher Earners